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Calcimator

Cash Conversion Cycle Calculator

Calculate the cash conversion cycle: DIO + DSO - DPO.

Inputs

$
$
$
$
$

Results

Cash Conversion Cycle

48.7 days

Days Inventory Outstanding48.7 days
Days Sales Outstanding36.5 days
Days Payable Outstanding36.5 days
Inventory Turnover7.5
AR Turnover10
AP Turnover10
How to Use This Calculator
  1. Enter average inventory balance and cost of goods sold for the period.
  2. Input average accounts receivable balance and annual revenue.
  3. Enter average accounts payable balance.
  4. Review the Days Inventory Outstanding, Days Sales Outstanding, Days Payable Outstanding, and CCC.
  5. A shorter CCC means cash flows back to the business faster — target improvements in the longest component.

How the result changes with Average Inventory

Average InventoryCash Conversion Cycle
$10,000,000.002,433.3 days
$35,000,000.008,516.7 days
$65,000,000.0015,816.7 days
$90,000,000.0021,900 days

What each input means

Average Inventory
Average inventory balance for the period.
Cost of Goods Sold
Annual cost of goods sold.
Accounts Receivable
Average accounts receivable balance.
Annual Revenue
Total annual revenue.
Accounts Payable
Average accounts payable balance.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Average Inventory = 200000, Cost of Goods Sold = 1500000, Accounts Receivable = 300000, Annual Revenue = 3000000 = 5 input(s) provided
  2. Calculate Cash Conversion Cycle
    48.7 = 48.7
  3. Calculate Days Inventory Outstanding
    48.7 = 48.7
  4. Calculate Days Sales Outstanding
    36.5 = 36.5

Engine last updated . Checked against 1 independently-derived test — how we verify calculators.

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